{"id":924,"date":"2023-12-28T13:00:00","date_gmt":"2023-12-28T13:00:00","guid":{"rendered":"https:\/\/cherylroll.com\/ppc-2023-year-review-us-google-antirust-trial-x-twitter-threads-435374\/"},"modified":"2023-12-28T13:00:00","modified_gmt":"2023-12-28T13:00:00","slug":"ppc-2023-year-review-us-google-antirust-trial-x-twitter-threads-435374","status":"publish","type":"post","link":"https:\/\/cherylroll.com\/ppc-2023-year-review-us-google-antirust-trial-x-twitter-threads-435374\/","title":{"rendered":"PPC 2023 in review: UA sunsets, Google antitrust trial, X's downfall and more"},"content":{"rendered":"
The PPC community had a rollercoaster year in 2023. Google stirred things up by shaking cushions and discreetly adjusting ad prices, and the entire industry faced a major shift with the sunset of Universal Analytics, forcing everyone to transition to Google Analytics 4. It’s fair to say that GA4 did not receive the warmest welcome.<\/p>\n
As we approach the end of 2023, let’s reflect on some of the most headline-worthy, controversial, and impactful changes that significantly influenced the PPC world over the past 12 months.<\/p>\n
Google spent 10 weeks on trial<\/a> for allegedly using underhand tactics to ensure it stays the world’s leading search engine. In September, the search engine was taken to court by the U.S. Justice Department (DOJ) and 35 states<\/a> in a landmark case that could bring significant changes to Google and the future of the Internet. The DOJ is hoping that the case will force Google to divest parts of its online advertising<\/a> business, which could have a major impact on advertisers<\/a>.<\/p>\n One of the most significant revelations from the 10-week trial occurred when Jerry Dischler, the head of Google Ads, testified that the search engine secretly raises ad prices to achieve targets<\/a> by as much as 10%, using techniques such as RGSP<\/a> (Google’s Randomized Generalized Second-Price ad auctions). <\/p>\n This revelation not only angered advertisers but also directly contradicted Dischler’s statement during a keynote speech at SMX Advanced in 2015. In a clip brought to light by Search Engine Land, Dischler explicitly informs marketers:<\/p>\n Advertisers have since accused Google of downplaying its manipulation<\/a> of ad prices, with some alleging that the company quietly increases ad prices by as much as 100%, a significant difference from the 10% figure mentioned by Dischler. <\/p>\n Other notable takeaway to come from the federal antitrust trial include:<\/p>\n Reacting to the revelations to come from the antitrust trial, some advertisers were so outraged that they claimed they no longer trust Google Ads<\/a> and were considering leaving.<\/p>\n Judge Amit P. Mehta, who was presiding the federal antitrust trial, is expected to make a decision in the New Year.<\/p>\n Google Ads chief Jerry Dischler resigned<\/a> two weeks after the federal antitrust trial ended. Google told us the decision had nothing to do with his testimony, during which he claimed the search engine quietly raises ad prices for marketers by as much as 10%. Apparently, he just wanted “a new challenge” after working in advertising for 15 years. <\/p>\n Google would not confirm whether Dischler is moving to another department or leaving the company. However, it was confirmed that Vidhya Srinivasan, who previously led product and engineering for ads, will take over leadership of the Ads team reporting to Google Senior Vice President Prabhakar Raghavan. Shashi Thakur, a 17-year Google veteran, will take on Srinivasan’s previous role and report directly to her.<\/p>\n Google was also sued by Gannett<\/a>, the publisher of USA Today, for using “deceptive commercial practices” and breaching U.S. antitrust and consumer protection laws in June. A few weeks later, eight individuals accused Google of illegally using copyrighted content<\/a> and stealing the personal information of millions of Americans to train its AI products in a proposed class action lawsuit in San Francisco.<\/p>\n Meanwhile, across the pond, Google is facing the possibility that it may be forced to sell part of its ad business<\/a> after being charged with violating the European Union’s antitrust laws. Following a lengthy investigation, the European Commission suggested that “mandatory divestment” is the only way the search engine can resolve the issue.<\/p>\n In the UK, publishers sued Google for $4.2 billion in lost ad revenue<\/a>. The claimants alleged that Google gave preferential treatment to its own ad tech products, which resulted in reduced display ad revenues for publishers.<\/p>\n In another blow for Google, an Adalytics study accused it of mis-selling video ads<\/a> to marketers for the last three years. Advertisers working for small businesses, Fortune 500 companies and even the U.S. Federal Government have all been impacted, with the Google violating its own standards approximately 80% of the time, according to the research. Google denied the claims, describing them as “extremely inaccurate”. <\/p>\n A second Adalytics study accused Google of risking the brand safety of advertisers by placing search ads on compromising non-Google websites, including sites containing pirated content and hardcore pornographic sites. Google categorically denied the allegations<\/a>.<\/p>\n Universal Analytics was officially replaced by Google Analytics 4<\/a> in July, but the sunset of UA was more gradual than expected. In fact, it took two months for the tool to finally stop processing data<\/a>. <\/p>\n Still, marketers were not happy. Despite repeated warnings<\/a> from Google that the enforced migration was coming, only one in four<\/a> marketers had fully adopted it in time, according to a Search Engine Land survey.<\/p>\n Marketers struggled to navigate the new interface<\/a>, so much so that many were contemplating switching to GA4 alternatives<\/a>. <\/p>\n Given the forced migration from UA, Google spent 2023 focusing on improving its product and rolled out numerous updates to GA4, including:<\/p>\n Google confirmed in May that it was experimenting with directly integrating Search and Shopping ads within SGE<\/a>. The search engine explained that search ads would be available on day one<\/a> of its release and that advertisers wouldn’t be able to opt out of showing ads on the new search experience – at least not immediately. <\/p>\n Google CEO Sundar Pichai<\/a> told Steven Levy in a Q&A published on Wired in September:<\/p>\n In November, Google began testing a new SGE ad format<\/a> and then rolled out new AI features within SGE to boost product visibility and conversions<\/a>.<\/p>\n Google Ads introduced Demand Gen on a global scale<\/a> in October, extending access to all advertisers. This feature, considered the “next generation of Discovery campaigns,” brings new elements such as enhanced ad creation flow, additional inventory, and insights. <\/p>\n Unlike Discovery campaigns, which were limited to images, carousels, or product data feeds for creatives, Demand Gen allows the use of videos. This includes regular YouTube videos and Shorts, providing advertisers with greater flexibility in crafting content that resonates with their target audience.<\/p>\n Google officially unveiled a new, simplified version of Merchant Center, called Merchant Center Next<\/a> (MCN), at Google Marketing Live 2023<\/a>. MCN will officially replace Google Merchant Center in early 2024. <\/p>\n In May, YouTube began issuing warning notifications to users, informing them that ad blockers are not allowed<\/a> on the platform. The social media platform told users to either turn ad blockers off<\/a> or pay for YouTube Premium if they want access to its extensive video library.<\/p>\n A month later, YouTube stepped up its tactics to stop its users from installing ad blocked by disabling videos<\/a>.<\/p>\n By August, the platform was testing a new anti-adblocker popup that featured a timer warning when the next ad will play. A countdown clock, which reportedly ran for 30 to 60 seconds, would appear in the top right corner of the message, showing non-paying viewers how long they have left to take action before another ad starts.<\/p>\n The following month, YouTube started sending users with ad blockers enabled more aggressive prompts<\/a>, warning them to either “Allow YouTube ads” or subscribe to YouTube Premium. The platform then admitted to delivering a “suboptimal” experience<\/a> to users with ad blockers enabled.<\/p>\n However, in November, it was reported that YouTube’s ad blocker crackdown could be illegal in the EU<\/a>. The platform had been using JavaScript code to detect ad-blocking extensions without asking users for consent first, claims privacy expert, Alexander Hanff – who has filed an official complaint with the Irish Data Protection Commission (DPC). The alleged act would mean YouTube is violating EU privacy laws – however, Google is denying the charge.<\/p>\n Amazon Prime Day 2023 set new records, emerging as the retailer’s most successful to date<\/a>. The two-day extravaganza, held on July 11 and 12, witnessed a notable year-on-year spending increase of 6.1%, reaching $12.7 billion in the U.S., as reported by Adobe Analytics data. These impressive outcomes followed Amazon’s strategic layoffs<\/a> in April within its advertising division.<\/p>\n In an effort to increase ad revenue, Amazon announced that Sponsored Product ads will now be served <\/a>on more platforms, including Pinterest and Buzzfeed. The retailer is also exploring the possibility of launching ads on Prime Video<\/a>.<\/p>\n However, when it comes to advertising on Amazon, the platform reportedly gives tech giant Apple an unfair advantage<\/a>. In a secret deal, Apple allegedly asked Amazon to not serve competitor ads on its product pages. In response, the retail giant reportedly agreed to only serve ads and recommendations at the bottom of Apple product pages – a gesture it doesn’t provide to rival brands like Samsung and Microsoft.<\/p>\n In other Amazon news, it was reported that the retailer’s share of seller revenue is now 50%<\/a>. Recent changes, including higher fulfillment fees and mandatory advertising expenses, have resulted in increased costs for sellers.<\/p>\n Both YouTube and TikTok introduced new features in 2023, and research from independent organizations underscored the platforms’ substantial value in effectively targeting specific demographics.<\/p>\n Following Elon Musk’s takeover in 2022, Twitter’s ad revenue steeply declined. In June, it was reported that advertising revenue had fallen by 59%<\/a> year-on-year, prompting Musk to bring in Linda Yaccarino as the new CEO. The following month, the platform changed its name to X<\/a> and tried to lure back advertisers by slashing the price of video ads<\/a>.<\/p>\n In August, major brands began pausing their ad spend<\/a> on X after learning campaigns appeared under pro-Nazi content. A Search Engine Land survey then found that less than a quarter of advertisers<\/a> were planning to advertise on X over the next 12 months.<\/p>\n X decided d to start outsourcing the sale of some of its ad space by joining forces with the Google Display Network<\/a> in October. However, after Musk endorsed an antisemitic conspiracy theory in November, it was reported that major brands weren’t just pausing their ad spend, they were cutting ties with the platform. Experts have predicted that X will lose as much as $75 million in ad revenue<\/a> by the end of the year.<\/p>\n Meta experienced a significant year with the introduction of Threads, launched<\/a> in July, with 100 million people subscribing<\/a> in the first 102 hours.<\/p>\n While much attention was given to the company’s latest platform, notable developments also took place across Instagram, Facebook, and WhatsApp.<\/p>\n After the departure of ads boss Rob Wilk in March, former VP, Global Partner & Retail Media Sales Kya Sainsbury-Carter took over. She keynoted Search Engine Land’s SMX Advanced in June. In a Q&A with Search Engine Land contributor Greg Finn, she discussed the future of Microsoft Advertising<\/a> and emphasized the role of conversational AI.<\/p>\n Here’s a breakdown of other significant advertising developments from Microsoft in 2023:<\/p>\n The rapid pace of AI development led to a sense of overwhelm among 70% of marketers<\/a> this year. Complicating the situation, both Google and Microsoft have been inserting ads into AI experiments without providing brands the option to opt-out. This has raised concerns among advertisers<\/a> who worry about their products and services being promoted alongside inappropriate content.<\/p>\n Here’s an overview of some of the most significant AI advancements, news and developments in 2023:<\/p>\n Several other platforms made waves in 2023:<\/p>\n\n
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Google Ads boss resigns <\/h2>\n
Google’s additional legal issues<\/h2>\n
Goodbye, Universal Analytics!<\/h2>\n
GA4 updates<\/h2>\n
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Search ads and Search Generative Experience<\/h2>\n
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Demand Gen goes global<\/h2>\n
Merchant Center Next<\/h2>\n
YouTube’s ad blocker battle<\/h2>\n
Amazon breaks records, Prime video ads, ‘quiet’ deals with Apple<\/h2>\n
YouTube and TikTok expand their ad offerings<\/h2>\n
YouTube<\/h3>\n
\n
TikTok<\/h3>\n
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The decline of X<\/h2>\n
Other Meta news<\/h2>\n
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Microsoft ads boss steps down, predictive targeting and Target CPA and Maximize Conversions<\/h2>\n
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Automation & Performance Max<\/h2>\n
Amazon<\/h3>\n
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Google<\/h3>\n
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Microsoft<\/h3>\n
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Meta<\/h3>\n
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Other platforms making headlines<\/h2>\n
Instacart<\/h3>\n
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Lyft<\/h3>\n